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Sunday, October 21, 2007

Outsourcing Government by by Naomi Klein

Naomi Klein

‘We didn’t want to get stuck with a lemon.” That’s what Homeland Security Secretary Michael Chertoff said to a House committee last month. He was referring to the “virtual fence” planned for the U.S. borders with Mexico and Canada. If the entire project goes as badly as the 28-mile prototype, it could turn out to be one of the most expensive lemons in history, projected to cost $8 billion by 2011.

Boeing, the company that landed the contract — the largest ever awarded by the Department of Homeland Security — announced this week that it will finally test the fence after months of delay due to computer problems. Heavy rains have confused its remote-controlled cameras and radar, and the sensors can’t tell the difference between moving people, grazing cows or rustling bushes.

But this debacle points to more than faulty technology. It exposes the faulty logic of the Bush administration’s vision of a hollowed-out government run everywhere possible by private contractors.

According to this radical vision, contractors treat the state as an ATM, withdrawing massive contracts to perform core functions like securing borders and interrogating prisoners, and making deposits in the form of campaign contributions. As President Bush’s former budget director, Mitch Daniels, put it: “The general idea — that the business of government is not to provide services but to make sure that they are provided — seems self-evident to me.”The flip side of the Daniels directive is that the public sector is rapidly losing the ability to fulfill its most basic responsibilities — and nowhere more so than in the Department of Homeland Security, which, as a Bush creation, has followed the ATM model since its inception.

For instance, when the controversial border project was launched, the department admitted that it had no idea how to secure the borders and, furthermore, didn’t think it was its job to figure it out. Homeland Security’s deputy secretary told a group of contractors that “this is an unusual invitation. … We’re asking you to come back and tell us how to do our business.”Private companies would not only perform the work, they would identify what work needed to be done, write their own work orders, implement them and oversee them. All the department had to do was sign the checks.

And as one former top Homeland Security official put it: “If it doesn’t come from industry, we are not going to be able to get it.”

Put simply, if any given job can’t be outsourced, it can’t be done.

This philosophy, so central to the Bush years, explains statistics like this one: In 2003, the U.S. government handed out 3,512 contracts to companies to perform domestic security functions, from bomb detection to data mining. In the 22-month period ending in August 2006, the Homeland Security Department had issued more than 115,000 security-related contracts.If government is now an ATM, perhaps the war on terror is best understood not as a war but as a sprawling new economy, one based on continued disaster and instability. In this economy, the Bush team doesn’t run the venture exactly; rather, it plays the role of deep-pocketed venture capitalist, always on the lookout for new security start-ups (overwhelmingly headed by former employees of the Pentagon and Homeland Security). Roger Novak, whose firm invests in homeland security companies, explains it like this: “Every fund is seeing how big the [government] trough is and asking, how do I get a piece of that action?”

The Boeing border contract is just one piece of that action. Another, of course, is the security contractor boom in Iraq, currently starring Blackwater USA.

Last month, when the Iraqi government accused Blackwater guards of massacring civilians in Baghdad, it became clear that the U.S. Embassy had no intention of severing ties with Blackwater because it could not function without it.

Perhaps that’s why that same bureau rushed to respond to the Iraqi government’s allegations in the September shooting with a “spot report” of its own: that Blackwater guards had come under attack and had responded accordingly. Days later, it emerged that an embassy contractor wrote the report — a contractor who worked for Blackwater. The administration then sent in the FBI to investigate the shootings. Yet it quickly emerged that the FBI investigators could well be guarded by Blackwater. The FBI announced that other arrangements would be made — but this was an exception.

And remember Hurricane Katrina, when contractors — including Blackwater — descended on New Orleans? FEMA was already so hollowed-out by then that it had to hire a contractor to help manage all the contractors. And with all the controversies, the Army recently decided it needed to update its manual for dealing with contractors — giving the job of drafting the new policy to one of its major contractors.

It still looks like a government — with impressive buildings, presidential news briefings, policy battles. But pull back the curtain and there is nobody home.

The Blackwater scandal could have provided an opportunity to question the wisdom of turning state security into a for-profit activity — but not in today’s Washington. Instead, rather than replacing its cowboy contractors with troops, the State Department says it will put video cameras on the vehicles they guard.

Video surveillance is one of the most lucrative sectors of the war-on-terror economy. This could even turn out to be great news for the top executives at Blackwater, who have launched a new private intelligence company billed as a “one-stop service able to meet all the intelligence, operational and security needs.” If the past is any indication, there is no reason why the men from Blackwater cannot be contracted to spy on Blackwater. Indeed, it would be the perfect expression of the hollow state that Bush built.

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"Bread and work and love, the poor man’s trinity, and by all three needs they chain him down." Christina Stead 1902-1983 Seven Poor Men of Sydney

"Every government is run by liars and nothing should be believed." I.F.Stone 1907-89

"I have made more friends for American culture than the State Department. Certainly I have made fewer enemies, but that isn't very difficult." Arthur Miler 1915-2005

"In times of universal deceit, telling the truth will be a revolutionary act." George Orwell 1903-50

"It is not enough for journalists to see themselves as mere messengers without understandig the hidden agendas of the message that surrounds it." John Pilger

"Lots of people who complained about us receiving the MBE received theirs for heroism in the war - for killing people. We received ours for entertaining other people. I'd say we deserve ours more." Joesph Heller 1923-99

"Media is just a word that has come to mean bad journalism." Graham Greene 1904-91

"My experience in the First World War and now the Second World War [his son Barney was killed in the Battle of Singapore] changed my outlook on things. It is hard to believe that there is a God. I feel the Bible is a book written by man but for the purpose of preying on a person’s conscience, and to confuse him. Anyone who taken part in a bayonet charge (and I have) [Gallipoli], and has managed to retain his proper senses, must doubt the truth of the Bible and the powers of God, if one exists. And considering the many hundreds of different religions that there are in this world of ours, and the fact that many religions have caused terrible wars and hatreds throughout the world, and that many religions that have hoarded tremendous wealth and property while people inside and outside religion are starving , it is difficult to remain a believer. No Sir, there is no God, it is only a myth." Albert Facey 1894-1982 A Fortunate Life

"Now take my case. I’m twenty-nine and have two brothers—one in the Liberal Party and one serving six years for rape and arson. My sister Peg is on the streets and Dad lives off her earnings. Mum is pregnant by the boarder and because of this Dad won’t marry her. Last night I got engaged to an ex-prostitute and I wish to be fair to her: should I tell her about my brother in the Liberal Party." David Ireland 1927- The Unknown Industrial Prisoner

"Prime Minster Howard I’ve heard You met George Bush and the Pope too, I understand, Oh I liked the Pope much better, I only had to kiss his hand." L’Amour Denis Kevans 1939-2005

"The first law of journalism-to confirm existing prejudice rather than contradict it." Alexander Cockburn

"The Labour Party [ALP], starting with a band of inspired Socialists, degenerated into a vast machine for capturing political power, but did not know how to use the power when attained except for the profit of individuals[...] Such is the history of all Labour organisations in Australia, and not because they are Australian , but because they are Labour..." Victor Gordon Childe 1892-1957, How Labour Governs

"The trouble with a free market economy is that it requires so many policemen to make it work." Neal Ascherson, 1932- Games with the Shadows, Policing the Marketplace.

"The trouble with America is that when the dollar only earns 6 percent over here, then it gets restless and goes overseas to get 100 percent. Then the flag follows the dollar and the soldiers follow the flag. I wouldn't go to war again as I have done to protect some lousy investment of the bankers. There are only two things we should fight for. One is the defense of our homes and the other is the Bill of Rights. War for any other reason is simply a racket. There isn't a trick in the racketeering bag that the military gang is blind to. It has its "finger men" to point out enemies, its "muscle men" to destroy enemies, its "brain men" to plan war preparations, and a "Big Boss" Super-Nationalistic-Capitalism. It may seem odd for me, a military man to adopt such a comparison. Truthfulness compels me to. I spent thirty- three years and four months in active military service as a member of this country's most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle- man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism. " Major General Smedley Butler,1881-1940

"What is the crime of robbing a bank compared with the crime of founding one." Bertolt Brecht 1898-1956

"Who is more to be pitied, a writer bound and gagged by policemen or one living in perfect freedom who has nothing more to say?" Kurt Vonnegut 1922-2007

[Battler]" a conscientious person working against many odds to make a living; one whose life is a constant struggle.’ Battlers maybe men or women; black or white. They rarely deal with racism (the negative side of our tradition) because they sympathise with anyone facing adversity or unfair criticism. The term ‘battler’ is a state of mind-a traditional attitude which goes back to the convict era, when the battler was on a flogging to nothing but fiddled around the rules and held his masters in contempt. The battlers are aware that they are being lied to by....politicians; and they suspect that Keating’s warning that Australia could become a banana republic is in fact, happening before their eyes." Frank Hardy 1917-1994. Retreat Australia Fair 1990

I don't respect the law; I have a total irreverence for anything connected with society except that which makes the roads safer, the beer stronger, the food cheaper and the old men and old women warmer in the winter and happier in the summer. Brendan Behan 1923-64

“I do what I do, and write what I write, without calculating what is worth what and so on. Fortunately, I am not a banker or an accountant. I feel that there is a time when a political statement needs to be made and I make it.” Arundhati Roy